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| Securities registered pursuant to Section 12(b) of the Act: | |||||||||||||||||||||||||||||||||||
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☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||||||||
| Smaller reporting company |
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Emerging growth company |
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||||||||||||||||||||
| TABLE OF CONTENTS | |||||||||||
| (In thousands) | 2020 | ||||
|
Electrical Americas
|
27 | ||||
| Electrical Global | 25 | ||||
| Hydraulics | 10 | ||||
| Aerospace | 10 | ||||
| Vehicle | 11 | ||||
| eMobility | 1 | ||||
| Corporate | 8 | ||||
| Total number of persons employed | 92 | ||||
|
(As of December 31, 2020)
|
Total Global | Number of women | Percentage of women | U.S. total | Number of minorities (U.S. only) | Percentage of minorities (U.S. only) | ||||||||||||||||||||||||||||||||
|
Board of directors
|
12 | 4 | 33.3 | % | 9 | 2 | 22.2 | % | ||||||||||||||||||||||||||||||
| Global leadership team | 26 | 5 | 19.2 | % | 24 | 13 | 54.2 | % | ||||||||||||||||||||||||||||||
| Executives | 594 | 126 | 21.2 | % | 412 | 73 | 17.7 | % | ||||||||||||||||||||||||||||||
| Managers | 7,479 | 1,705 | 22.8 | % | 3,877 | 698 | 18.0 | % | ||||||||||||||||||||||||||||||
| All other employees | 83,888 | 27,722 | 33.0 | % | 21,522 | 7,276 | 33.8 | % | ||||||||||||||||||||||||||||||
| All employees | 91,987 | 29,558 | 32.1 | % | 25,835 | 8,060 | 31.2 | % | ||||||||||||||||||||||||||||||
| Name | Age | Position (Date elected to position) | ||||||||||||
| Craig Arnold | 60 | Chairman of Eaton Corporation plc (June 1, 2016 - present) | ||||||||||||
|
Chief Executive Officer of Eaton Corporation (June 1, 2016 - present)
|
||||||||||||||
| Director of Eaton Corporation plc (September 1, 2015 - present) | ||||||||||||||
|
President and Chief Operating Officer of Eaton Corporation
|
||||||||||||||
|
(September 1, 2015 - May 31, 2016)
|
||||||||||||||
| Richard H. Fearon | 64 | Director of Eaton Corporation plc (September 1, 2015 - present) | ||||||||||||
| Vice Chairman and Chief Financial and Planning Officer of Eaton Corporation | ||||||||||||||
| (April 24, 2002 - present) | ||||||||||||||
| Thomas B. Okray | 58 | Executive Vice President and Chief Financial Officer-Elect of Eaton Corporation | ||||||||||||
| (January 2021 - present) | ||||||||||||||
| Senior Vice President and Chief Financial Officer of W.W. Grainger, Inc. | ||||||||||||||
| (April 2018 - December 2020) | ||||||||||||||
| Executive Vice President and Chief Financial Officer of Advance Auto Parts, Inc. | ||||||||||||||
| (October 2016 - April 2018) | ||||||||||||||
| Vice President, Finance, Global Customer Fulfillment of Amazon.com, Inc. | ||||||||||||||
| (July 2015 - September 2016) | ||||||||||||||
| Uday Yadav | 57 | President and Chief Operating Officer - Electrical Sector of Eaton Corporation | ||||||||||||
| (July 1, 2019 - present) | ||||||||||||||
| Chief Operating Officer - Industrial Sector of Eaton Corporation | ||||||||||||||
| (September 1, 2015 - June 30, 2019) | ||||||||||||||
| Heath B. Monesmith | 50 | President and Chief Operating Officer - Industrial Sector of Eaton Corporation | ||||||||||||
| (July 1, 2019 - present) | ||||||||||||||
| Executive Vice President and General Counsel of Eaton Corporation | ||||||||||||||
| (March 1, 2017 - January 6, 2020) | ||||||||||||||
| Senior Vice President and Deputy General Counsel of Eaton Corporation | ||||||||||||||
| (May 15, 2015 - March 1, 2017) | ||||||||||||||
| April Miller Boise | 52 | Executive Vice President, General Counsel and Secretary of Eaton Corporation | ||||||||||||
| (January 6, 2020 - present) | ||||||||||||||
| Senior Vice President, Chief Legal Officer and Corporate Secretary of Meritor, Inc. | ||||||||||||||
| (August 15, 2016 - December 13, 2019) | ||||||||||||||
| Senior Vice President, General Counsel, Head of Global Mergers and Acquisitions, | ||||||||||||||
| and Corporate Secretary of Avintiv, Inc. (March 23, 2015 - December 31, 2015) | ||||||||||||||
| Ernest W. Marshall, Jr. | 52 | Executive Vice President and Chief Human Resources Officer of Eaton Corporation | ||||||||||||
| (July 1, 2018 - present) | ||||||||||||||
| Vice President - Human Resources, Aviation Division of General Electric | ||||||||||||||
| (August 1, 2013 - June 30, 2018) | ||||||||||||||
| Ken D. Semelsberger | 59 | Senior Vice President and Controller of Eaton Corporation | ||||||||||||
| (November 1, 2013 - present) | ||||||||||||||
| Joao V. Faria | 56 | President - Vehicle Group of Eaton Corporation (May 1, 2017 - present) | ||||||||||||
| Vice President and General Manager, Latin America, Electrical Sector and | ||||||||||||||
| President, Latin America (August 1, 2013 - April 30, 2017) | ||||||||||||||
| Nandakumar Cheruvatath | 59 | President - Aerospace Group of Eaton Corporation (September 1, 2015 - present) | ||||||||||||
| Paulo Ruiz Sternadt | 46 | President - Hydraulics Group of Eaton Corporation (April 1, 2019 - present) | ||||||||||||
| Chief Executive Officer - Dresser Rand, a Siemens business | ||||||||||||||
| (October 19, 2017 - March 30, 2019) | ||||||||||||||
| Executive Vice President - Global Solutions and New Technologies & Strategic | ||||||||||||||
| Business Development of Dresser Rand, a Siemens business | ||||||||||||||
| (April 1, 2016 - October 18, 2017) | ||||||||||||||
| Global Segment Head - Business Segment Bushings, Instrument Transformers & Coils, | ||||||||||||||
| Siemens AG (April 1, 2012 - March 30, 2016) | ||||||||||||||
| Brian S. Brickhouse | 57 | President - Americas Region, Electrical Sector of Eaton Corporation | ||||||||||||
| (July 1, 2019 - present) | ||||||||||||||
| President - Electrical Systems and Services Group of Eaton Corporation | ||||||||||||||
| (July 1, 2018 - June 30, 2019) | ||||||||||||||
| President, Asia Pacific Region, Electrical (May 15, 2015 - June 30, 2018) | ||||||||||||||
| Month | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||||||||||||||
| October | — | $ | — | — | $ | 2,225 | ||||||||||||||||||||
| November | 685,999 | $ | 110.17 | 685,999 | $ | 2,149 | ||||||||||||||||||||
| December | 476,491 | $ | 115.74 | 476,491 | $ | 2,094 | ||||||||||||||||||||
| Total | 1,162,490 | $ | 112.45 | 1,162,490 | ||||||||||||||||||||||
| 3 (i) | ||||||||
| 3 (ii) | ||||||||
| 4.1 | ||||||||
| 4.2 | ||||||||
| 4.3 | ||||||||
| 4.4 | ||||||||
| 4.5 | ||||||||
| 4.6 | ||||||||
| 4.7 | ||||||||
| 4.8 | Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its long-term debt other than those set forth in Exhibits (4.2 - 4.7) hereto | |||||||
| 10 | Material contracts | |||||||
| (a) | ||||||||
| (b) | ||||||||
| (c) | ||||||||
| (d) | ||||||||
| (e) | ||||||||
| (f) | ||||||||
| (g) | ||||||||
| (h) | ||||||||
| (i) | ||||||||
| (j) | ||||||||
| (k) | ||||||||
| (l) | ||||||||
| (m) | ||||||||
| (n) | ||||||||
| (o) | ||||||||
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| (q) | ||||||||
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(s)
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| (t) | ||||||||
| (u) | ||||||||
| (v) | ||||||||
| (w) | ||||||||
| (x) | ||||||||
| (y) | ||||||||
| (z) | ||||||||
| (aa) | ||||||||
| (bb) | ||||||||
| (cc) | ||||||||
| (dd) | ||||||||
| (ee) | ||||||||
| (ff) | ||||||||
| (gg) | ||||||||
| (hh) | ||||||||
| (ii) | ||||||||
| (jj) | ||||||||
| (kk) | ||||||||
| (ll) | ||||||||
| (mm) | ||||||||
| (nn) | ||||||||
| (oo) | ||||||||
| (pp) | ||||||||
| (qq) | ||||||||
| (rr) | ||||||||
| (ss) | ||||||||
| (tt) | ||||||||
| (uu) | ||||||||
| (vv) | ||||||||
| (ww) | ||||||||
| (xx) | ||||||||
| (yy) | ||||||||
| (zz) | ||||||||
| (aaa) | ||||||||
| (bbb) | ||||||||
| (ccc) | ||||||||
| (ddd) | ||||||||
| (eee) | ||||||||
| (fff) | ||||||||
| (ggg) | ||||||||
| (hhh) | ||||||||
| 14 | ||||||||
| 21 | ||||||||
| 22 | ||||||||
| 23 | ||||||||
| 24 | ||||||||
| 31.1 | ||||||||
| 31.2 | ||||||||
| 32.1 | ||||||||
| 32.2 | ||||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. * | |||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document * | |||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document * | |||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document * | |||||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document * | |||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document * | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
| * | Submitted electronically herewith. | ||||
| EATON CORPORATION plc | |||||||||||
| Registrant | |||||||||||
| Date: | February 24, 2021 | By: | /s/ Richard H. Fearon | ||||||||
| Richard H. Fearon | |||||||||||
| (On behalf of the registrant and as Principal Financial Officer) | |||||||||||
| Signature | Title | |||||||||||||||||||
| /s/ Craig Arnold | /s/ Richard H. Fearon | |||||||||||||||||||
| Craig Arnold | Chairman, Principal Executive Officer; Director | Richard H. Fearon | Principal Financial Officer, Director | |||||||||||||||||
| /s/ Ken D. Semelsberger | * | |||||||||||||||||||
| Ken D. Semelsberger | Principal Accounting Officer | Christopher M. Connor | Director | |||||||||||||||||
| * | * | |||||||||||||||||||
| Michael J. Critelli | Director | Olivier Leonetti | Director | |||||||||||||||||
| * | * | |||||||||||||||||||
| Deborah L. McCoy | Director | Silvio Napoli | Director | |||||||||||||||||
| * | * | |||||||||||||||||||
| Gregory R. Page | Director | Sandra Pianalto | Director | |||||||||||||||||
| * | * | |||||||||||||||||||
| Lori J. Ryerkerk | Director | Gerald B. Smith | Director | |||||||||||||||||
| * | ||||||||||||||||||||
| Dorothy C. Thompson | Director | |||||||||||||||||||
| *By | /s/ Richard H. Fearon | |||||||
|
Richard H. Fearon, Attorney-in-Fact for the officers
and directors signing in the capacities indicated |
||||||||
| Unrecognized Income Tax Benefits | |||||
|
Description of the Matter |
As discussed in Note 11 to the consolidated financial statements, the Company had gross unrecognized income tax benefits of $1,036 million related to its uncertain tax positions at December 31, 2020. Unrecognized income tax benefits are recorded under the two-step recognition and measurement principles when a tax position does not meet the more likely than not standard, or if a tax position meets the more likely than not standard, but the financial statement tax benefit is reduced as part of the measurement step. The balance of unrecognized income tax benefits is comprised of uncertain tax positions which meet the more likely than not standard, but the financial statement tax benefit has been reduced as part of measuring the tax position. Auditing management’s analysis of its uncertain tax positions and resulting unrecognized income tax benefits is complex as each tax position carries unique facts and circumstances that must be evaluated and ultimate resolution is dependent on uncontrollable factors such as the prospect of retroactive regulations, new case law, the willingness of the income tax authority to settle the issue, including the timing thereof, and other factors. |
||||
| How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of management’s controls related to uncertain tax positions. For example, we tested controls over management’s application of the two-step recognition and measurement principles and management’s review of the inputs and resultant calculations of unrecognized income tax benefits, as well as the identification of uncertain tax positions.
We also evaluated the Company’s assessment of its uncertain tax positions. Our audit procedures included evaluating management’s accounting policies and documentation to assess the appropriateness and consistency of the methods and assumptions used to develop its uncertain tax positions and related unrecognized income tax benefit amounts by jurisdiction. We also tested the completeness and accuracy of the underlying data used by the Company. For example, we compared the unrecognized income tax benefits recorded with similar positions in prior periods and assessed management’s consideration of current tax controversy and litigation and trends in similar positions challenged by tax authorities. We also assessed the historical accuracy of management’s estimates of its unrecognized income tax benefits with the resolution of those positions. In addition, we involved tax subject matter professionals to evaluate the application of relevant tax laws in the Company’s recognition determination. Further, we tested the Company’s release of previously recorded unrecognized income tax benefits, which along with the recording of additional unrecognized tax benefits, impacts the Company’s tax provision. We have also evaluated the Company’s income tax disclosures in relation to these matters. |
||||
| Reallocation of Goodwill related to the Divestiture of the Hydraulics Business and the Re-segmentation of certain Operating Segments | |||||
|
Description of the Matter |
As discussed in Notes 2 and 6 to the consolidated financial statements, in January 2020 the Company entered into an agreement to sell its Hydraulics business to Danfoss A/S for $3.3 billion in cash and classified the assets and liabilities of the Hydraulics business being sold (“Hydraulics”) as held for sale. In conjunction with classification of Hydraulics as held for sale, management reassigned goodwill using a relative fair value allocation to both Hydraulics and the Filtration and Golf Grip businesses previously included in the Hydraulics operating segment and subsequently included within the Aerospace operating segment as part of the re-segmentation described below. Goodwill of $907 million was allocated to Hydraulics as part of the classifying Hydraulics assets as held for sale in the first quarter.
Additionally, during the first quarter of 2020, as discussed in Note 6 to the consolidated financial statements, the Company re-segmented certain operating segments due to a reorganization of the Company’s businesses. Specific to the Electrical business, the Company replaced the previous Electrical Products and Electrical Systems and Services segments with the Electrical Americas and the Electrical Global segments (collectively referred to as the “New Electrical Segments”). Management reassigned goodwill to the New Electrical Segments using a relative fair value allocation which resulted in goodwill of $6.4 billion and $4.0 billion being allocated to the Electrical Americas and Electrical Global operating segments, respectively.
Auditing the Company's reallocation of goodwill to Hydraulics and the New Electrical Segments was complex due to the significant estimation required to determine each of the fair values of the impacted reporting units referred to above. These fair value estimates were sensitive to significant assumptions such as the weighted-average cost of capital, revenue growth rates, operating margins and the terminal values, which are affected by expectations about future market or economic conditions.
|
||||
| How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of management’s controls over the goodwill allocation processes. For example, we tested controls over management’s review of the significant assumptions described above along with the completeness and accuracy of the data used in these fair value estimates.
To test the estimated fair value of the impacted reporting units, our audit procedures included, among others, evaluating the Company’s fair value methodology, testing the significant assumptions discussed above and testing the underlying data used by the Company in each of its analyses. For example, we compared the significant assumptions used by management to current industry and economic trends. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the impacted reporting units that would result from changes in assumptions. We also involved EY valuation specialists to assist in our evaluation of the weighted-average cost of capital utilized in each fair value estimate. We tested the allocations of goodwill by recalculating the amounts based on the estimated fair values of each of the impacted reporting units. Furthermore, we have evaluated the Company’s disclosures in relation to the reallocation of goodwill.
|
||||
| Valuation of Intangible Assets in the Acquisition of Souriau-Sunbank Connection Technologies | |||||
|
Description of the Matter |
As discussed in Note 2 to the consolidated financial statements, during December 2019 the Company completed the acquisition of the Souriau-Sunbank Connection Technologies business (“Souriau-Sunbank”) for a total purchase price of approximately $907 million, net of cash received. The acquisition was accounted for using the acquisition method of accounting. The consideration paid in the acquisition must be allocated to the acquired assets and liabilities assumed generally based on their fair value with the excess of the purchase price over those fair values allocated to goodwill. The preliminary estimates of the fair value of intangible assets were revised during the measurement period in 2020 as third-party valuations were received and finalized resulting in the recognition of customer relationships and technology intangible assets of $250 million and $95 million, respectively.
Auditing the Company’s accounting for its acquisition of Souriau-Sunbank was complex because the customer relationships and technology intangible assets recognized were material to the consolidated financial statements and the estimates of fair value involved subjectivity. The subjectivity was primarily due to the sensitivity of the respective fair values to underlying assumptions about the future performance of the acquired business. The Company used discounted cash flow models to measure the intangible assets. The significant assumptions used to estimate the fair value of the intangible assets included discount rates and certain assumptions that form the basis of the forecasted results (e.g., revenue growth rates and future EBITDA margins). These significant assumptions are forward looking and could be affected by future economic and market conditions.
|
||||
| How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over its accounting for the acquisition of Souriau-Sunbank, including recognition and measurement of the intangible assets acquired. For example, we tested controls over the recognition and measurement of customer relationships and technology intangible assets, including management’s review of the methods and significant assumptions used to develop such fair value estimates.
To test the estimated fair values of the customer relationships and technology intangible assets, we performed audit procedures that included, among others, evaluating the Company's selection of the valuation methodology, evaluating the methods and significant assumptions used by the Company's valuation specialist, and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions and estimates. We also performed sensitivity analyses to evaluate the changes in the fair value of such intangible assets that would result from changes in the significant assumptions. We involved our EY valuation specialists to assist with our evaluation of the methodology used by the Company and certain significant assumptions included in the fair value estimates. For example, when evaluating the assumptions related to the revenue growth rates and future EBITDA margins, we compared the assumptions to the past performance of Souriau-Sunbank and expected industry trends and considered whether they were consistent with evidence obtained in other areas of the audit. Furthermore, we have evaluated the Company’s disclosures in relation to the Souriau-Sunbank acquisition.
|
||||
| /s/ Craig Arnold | /s/ Richard H. Fearon | /s/ Ken D. Semelsberger | ||||||||||||
| Principal Executive Officer | Principal Financial Officer | Principal Accounting Officer | ||||||||||||
| February 24, 2021 | ||||||||||||||
| /s/ Craig Arnold | /s/ Richard H. Fearon | /s/ Ken D. Semelsberger | ||||||||||||
| Principal Executive Officer | Principal Financial Officer | Principal Accounting Officer | ||||||||||||
| February 24, 2021 | ||||||||||||||
| Year ended December 31 | |||||||||||||||||
| (In millions except for per share data) | 2020 | 2019 | 2018 | ||||||||||||||
| Net sales | $ |
|
$ |
|
$ |
|
|||||||||||
| Cost of products sold |
|
|
|
||||||||||||||
| Selling and administrative expense |
|
|
|
||||||||||||||
| Research and development expense |
|
|
|
||||||||||||||
| Interest expense - net |
|
|
|
||||||||||||||
| Gain on sale of business |
|
|
|
||||||||||||||
| Arbitration decision expense |
|
|
|
||||||||||||||
| Other expense - net |
|
|
|
||||||||||||||
| Income before income taxes |
|
|
|
||||||||||||||
| Income tax expense |
|
|
|
||||||||||||||
| Net income |
|
|
|
||||||||||||||
| Less net income for noncontrolling interests |
(
|
(
|
(
|
||||||||||||||
| Net income attributable to Eaton ordinary shareholders | $ |
|
$ |
|
$ |
|
|||||||||||
| Net income per share attributable to Eaton ordinary shareholders | |||||||||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
|||||||||||
| Basic |
|
|
|
||||||||||||||
| Weighted-average number of ordinary shares outstanding | |||||||||||||||||
| Diluted |
|
|
|
||||||||||||||
| Basic |
|
|
|
||||||||||||||
| Cash dividends declared per ordinary share | $ |
|
$ |
|
$ |
|
|||||||||||
| Year ended December 31 | |||||||||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Less net income for noncontrolling interests |
(
|
(
|
(
|
||||||||||||||
| Net income attributable to Eaton ordinary shareholders |
|
|
|
||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||
| Currency translation and related hedging instruments |
|
|
(
|
||||||||||||||
| Pensions and other postretirement benefits |
(
|
(
|
(
|
||||||||||||||
| Cash flow hedges |
(
|
(
|
|
||||||||||||||
|
Other comprehensive income (loss) attributable to Eaton
ordinary shareholders |
|
(
|
(
|
||||||||||||||
| Total comprehensive income attributable to Eaton ordinary shareholders | $ |
|
$ |
|
$ |
|
|||||||||||
| December 31 | |||||||||||
| (In millions) | 2020 | 2019 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash | $ |
|
$ |
|
|||||||
| Short-term investments |
|
|
|||||||||
| Accounts receivable - net |
|
|
|||||||||
| Inventory |
|
|
|||||||||
| Assets held for sale |
|
|
|||||||||
| Prepaid expenses and other current assets |
|
|
|||||||||
| Total current assets |
|
|
|||||||||
| Property, plant and equipment | |||||||||||
| Land and buildings |
|
|
|||||||||
| Machinery and equipment |
|
|
|||||||||
| Gross property, plant and equipment |
|
|
|||||||||
| Accumulated depreciation |
(
|
(
|
|||||||||
| Net property, plant and equipment |
|
|
|||||||||
| Other noncurrent assets | |||||||||||
| Goodwill |
|
|
|||||||||
| Other intangible assets |
|
|
|||||||||
| Operating lease assets |
|
|
|||||||||
| Deferred income taxes |
|
|
|||||||||
| Other assets |
|
|
|||||||||
| Total assets | $ |
|
$ |
|
|||||||
| Liabilities and shareholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Short-term debt | $ |
|
$ |
|
|||||||
| Current portion of long-term debt |
|
|
|||||||||
| Accounts payable |
|
|
|||||||||
| Accrued compensation |
|
|
|||||||||
| Liabilities held for sale |
|
|
|||||||||
| Other current liabilities |
|
|
|||||||||
| Total current liabilities |
|
|
|||||||||
| Noncurrent liabilities | |||||||||||
| Long-term debt |
|
|
|||||||||
| Pension liabilities |
|
|
|||||||||
| Other postretirement benefits liabilities |
|
|
|||||||||
| Operating lease liabilities |
|
|
|||||||||
| Deferred income taxes |
|
|
|||||||||
| Other noncurrent liabilities |
|
|
|||||||||
| Total noncurrent liabilities |
|
|
|||||||||
| Shareholders’ equity | |||||||||||
|
Ordinary shares (
|
|
|
|||||||||
| Capital in excess of par value |
|
|
|||||||||
| Retained earnings |
|
|
|||||||||
| Accumulated other comprehensive loss |
(
|
(
|
|||||||||
| Shares held in trust |
(
|
(
|
|||||||||
| Total Eaton shareholders’ equity |
|
|
|||||||||
| Noncontrolling interests |
|
|
|||||||||
| Total equity |
|
|
|||||||||
| Total liabilities and equity | $ |
|
$ |
|
|||||||
| Year ended December 31 | |||||||||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||||||||
| Operating activities | |||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Adjustments to reconcile to net cash provided by operating activities | |||||||||||||||||
| Depreciation and amortization |
|
|
|
||||||||||||||
| Deferred income taxes |
(
|
(
|
(
|
||||||||||||||
| Pension and other postretirement benefits expense |
|
|
|
||||||||||||||
| Contributions to pension plans |
(
|
(
|
(
|
||||||||||||||
| Contributions to other postretirement benefits plans |
(
|
(
|
(
|
||||||||||||||
| Loss (gain) on sale of businesses |
(
|
|
|
||||||||||||||
| Changes in working capital | |||||||||||||||||
| Accounts receivable - net |
|
|
(
|
||||||||||||||
| Inventory |
|
(
|
(
|
||||||||||||||
| Accounts payable |
|
|
|
||||||||||||||
| Accrued compensation |
(
|
(
|
|
||||||||||||||
| Accrued income and other taxes |
(
|
|
|
||||||||||||||
| Other current assets |
(
|
|
|
||||||||||||||
| Other current liabilities |
|
(
|
(
|
||||||||||||||
| Other - net |
|
|
|
||||||||||||||
| Net cash provided by operating activities |
|
|
|
||||||||||||||
| Investing activities | |||||||||||||||||
| Capital expenditures for property, plant and equipment |
(
|
(
|
(
|
||||||||||||||
| Cash paid for acquisitions of businesses, net of cash acquired |
(
|
(
|
|
||||||||||||||
| Proceeds from (payments for) sales of businesses |
|
(
|
|
||||||||||||||
| Sales (purchases) of short-term investments - net |
(
|
(
|
|
||||||||||||||
|
Proceeds from (payments for) settlement of currency exchange contracts not designated as
hedges - net
|
|
|
(
|
||||||||||||||
| Other - net |
(
|
(
|
(
|
||||||||||||||
| Net cash provided by (used in) investing activities |
|
(
|
(
|
||||||||||||||
| Financing activities | |||||||||||||||||
| Proceeds from borrowings |
|
|
|
||||||||||||||
| Payments on borrowings |
(
|
(
|
(
|
||||||||||||||
| Cash dividends paid |
(
|
(
|
(
|
||||||||||||||
| Exercise of employee stock options |
|
|
|
||||||||||||||
| Repurchase of shares |
(
|
(
|
(
|
||||||||||||||
| Employee taxes paid from shares withheld |
(
|
(
|
(
|
||||||||||||||
| Other - net |
(
|
(
|
(
|
||||||||||||||
| Net cash used in financing activities |
(
|
(
|
(
|
||||||||||||||
| Effect of currency on cash |
(
|
(
|
|
||||||||||||||
| Total increase (decrease) in cash |
|
|
(
|
||||||||||||||
| Cash at the beginning of the period |
|
|
|
||||||||||||||
| Cash at the end of the period | $ |
|
$ |
|
$ |
|
|||||||||||
| Ordinary shares | Capital in excess of par value | Retained earnings | Accumulated other comprehensive loss | Shares held in trust | Total Eaton shareholders' equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Shares | Dollars | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2018 |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||
|
Cumulative-effect adjustment upon adoption of ASU 2014-09
|
— | — | — |
(
|
— | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Cumulative-effect adjustment upon adoption of ASU 2016-16
|
— | — | — |
(
|
— | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends paid | — | — | — |
(
|
— | — |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Issuance of shares under equity-based compensation plans
|
|
— |
|
(
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
|
Changes in noncontrolling interest of consolidated subsidiaries - net
|
— | — | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of shares |
(
|
— | — |
(
|
— | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2018 |
|
|
|
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive loss, net of tax
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends paid | — | — | — |
(
|
— | — |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Issuance of shares under equity-based compensation plans
|
|
— |
|
(
|
— |
|
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions of businesses | — | — | — | — | — | — | — |
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Acquisition of noncontrolling interest obtained through tender offer
|
— | — | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Business divestiture
|
— | — | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Changes in noncontrolling interest of consolidated subsidiaries - net
|
— | — | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of shares |
(
|
— | — |
(
|
— | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2019 |
|
|
|
|
(
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends paid | — | — | — |
(
|
— | — |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
Issuance of shares under equity-based compensation plans
|
|
— |
|
(
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
|
Changes in noncontrolling interest of consolidated subsidiaries - net
|
— | — | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of shares |
(
|
— | — |
(
|
— | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2020 |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||
|
Preliminary
Allocation |
Measurement Period
Adjustments |
Final
Allocations |
|||||||||||||||
| Accounts Receivable - net | $ |
|
$ | — | $ |
|
|||||||||||
| Inventory |
|
|
|
||||||||||||||
| Prepaid expenses and other current assets |
|
(
|
|
||||||||||||||
| Property, plant and equipment |
|
|
|
||||||||||||||
| Other intangible assets |
|
(
|
|
||||||||||||||
| Other assets |
|
— |
|
||||||||||||||
| Accounts payable |
(
|
|
(
|
||||||||||||||
| Other current liabilities |
(
|
(
|
(
|
||||||||||||||
| Other noncurrent liabilities |
(
|
|
(
|
||||||||||||||
| Total identifiable net assets |
|
(
|
|
||||||||||||||
| Noncontrolling interests |
(
|
|
(
|
||||||||||||||
| Goodwill |
|
|
|
||||||||||||||
| Total consideration, net of cash received | $ |
|
$ |
|
$ |
|
|||||||||||
|
December 31, 2020
(Hydraulics business) |
December 31, 2019
(Lighting business) |
||||||||||
| Accounts receivable | $ |
|
$ |
|
|||||||
| Inventory |
|
|
|||||||||
| Prepaid expenses and other current assets |
|
|
|||||||||
| Net property, plant and equipment |
|
|
|||||||||
| Goodwill |
|
|
|||||||||
| Other intangible assets |
|
|
|||||||||
| Operating lease assets |
|
|
|||||||||
| Deferred income taxes |
|
— | |||||||||
| Other noncurrent assets |
|
|
|||||||||
| Assets held for sale - current | $ |
|
$ |
|
|||||||
| Accounts payable | $ |
|
$ |
|
|||||||
| Accrued compensation |
|
|
|||||||||
| Other current liabilities |
|
|
|||||||||
| Pension liabilities |
|
|
|||||||||
| Operating lease liabilities |
|
|
|||||||||
| Deferred income taxes |
|
(
|
|||||||||
| Other noncurrent liabilities |
|
|
|||||||||
| Liabilities held for sale - current | $ |
|
$ |
|
|||||||
| 2020 | |||||||||||||||||||||||
| Net sales | Products | Systems | Total | ||||||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| Electrical Global |
|
|
|
||||||||||||||||||||
| United States | Rest of World | ||||||||||||||||||||||
| Hydraulics | $ |
|
$ |
|
|
||||||||||||||||||
| Original Equipment Manufacturers | Aftermarket | Industrial and Other | |||||||||||||||||||||
| Aerospace | $ |
|
$ |
|
$ |
|
|
||||||||||||||||
| Commercial | Passenger and Light Duty | ||||||||||||||||||||||
| Vehicle | $ |
|
$ |
|
|
||||||||||||||||||
| eMobility |
|
||||||||||||||||||||||
| Total | $ |
|
|||||||||||||||||||||
| 2019 | |||||||||||||||||||||||
| Net sales | Products | Systems | Total | ||||||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| Electrical Global |
|
|
|
||||||||||||||||||||
| United States | Rest of World | ||||||||||||||||||||||
| Hydraulics | $ |
|
$ |
|
|
||||||||||||||||||
| Original Equipment Manufacturers | Aftermarket | Industrial and Other | |||||||||||||||||||||
| Aerospace | $ |
|
$ |
|
$ |
|
|
||||||||||||||||
| Commercial | Passenger and Light Duty | ||||||||||||||||||||||
| Vehicle | $ |
|
$ |
|
|
||||||||||||||||||
| eMobility |
|
||||||||||||||||||||||
| Total | $ |
|
|||||||||||||||||||||
| 2018 | |||||||||||||||||||||||
| Net sales | Products | Systems | Total | ||||||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| Electrical Global |
|
|
|
||||||||||||||||||||
| United States | Rest of World | ||||||||||||||||||||||
| Hydraulics | $ |
|
$ |
|
|
||||||||||||||||||
| Original Equipment Manufacturers | Aftermarket | Industrial and Other | |||||||||||||||||||||
| Aerospace | $ |
|
$ |
|
$ |
|
|
||||||||||||||||
| Commercial | Passenger and Light Duty | ||||||||||||||||||||||
| Vehicle | $ |
|
$ |
|
|
||||||||||||||||||
| eMobility |
|
||||||||||||||||||||||
| Total | $ |
|
|||||||||||||||||||||
| Deferred Revenue | |||||
| Balance at January 1, 2019 | $ |
|
|||
| Customer deposits and billings |
|
||||
| Revenue recognized in the period |
(
|
||||
| Translation |
|
||||
| Deferred revenue reclassified to held for sale |
(
|
||||
| Balance at December 31, 2019 | $ |
|
|||
| Customer deposits and billings |
|
||||
| Revenue recognized in the period |
(
|
||||
| Translation |
|
||||
| Deferred revenue reclassified to held for sale |
(
|
||||
| Balance at December 31, 2020 | $ |
|
|||
| December 31 | |||||||||||
| 2020 | 2019 | ||||||||||
| Raw materials | $ |
|
$ |
|
|||||||
| Work-in-process |
|
|
|||||||||
| Finished goods |
|
|
|||||||||
| Total inventory | $ |
|
$ |
|
|||||||
| January 1, 2019 | Additions | Goodwill reclassified to held for sale | Translation | December 31, 2019 | Additions | Goodwill reclassified to held for sale | Translation | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Electrical Global |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Hydraulics |
|
|
|
(
|
|
|
(
|
(
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Aerospace |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Vehicle |
|
|
|
(
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| eMobility |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| December 31 | |||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
|
Historical
cost |
Accumulated
amortization |
Historical
cost |
Accumulated
amortization |
||||||||||||||||||||
| Intangible assets not subject to amortization | |||||||||||||||||||||||
| Trademarks | $ |
|
$ |
|
|||||||||||||||||||
| Intangible assets subject to amortization | |||||||||||||||||||||||
| Customer relationships | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Patents and technology |
|
|
|
|
|||||||||||||||||||
| Trademarks |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
| Total intangible assets subject to amortization | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| 2020 | $ |
|
|||
| 2021 |
|
||||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| 2020 | 2019 | ||||||||||
| Operating lease cost | $ |
|
$ |
|
|||||||
| Finance lease cost: | |||||||||||
| Amortization of lease assets |
|
|
|||||||||
| Interest on lease liabilities |
|
|
|||||||||
| Short-term lease cost |
|
|
|||||||||
| Variable lease cost |
|
|
|||||||||
| Sublease income |
(
|
(
|
|||||||||
| Total lease cost | $ |
|
$ |
|
|||||||
| 2020 | 2019 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash outflows - payments on operating leases | $ |
(
|
$ |
(
|
|||||||
| Operating cash outflows - interest payments on finance leases |
(
|
(
|
|||||||||
| Financing cash outflows - payments on finance lease obligations |
(
|
(
|
|||||||||
| Lease assets obtained in exchange for new lease obligations, including leases acquired: | |||||||||||
| Operating leases | $ |
|
$ |
|
|||||||
| Finance leases |
|
|
|||||||||
| December 31 | |||||||||||
| 2020 | 2019 | ||||||||||
| Operating Leases | |||||||||||
|
Operating lease assets
|
$ |
|
$ |
|
|||||||
|
|
|
|
|||||||||
|
Operating lease liabilities
|
|
|
|||||||||
|
Total operating lease liabilities
|
$ |
|
$ |
|
|||||||
| Finance Leases | |||||||||||
|
Land and buildings
|
$ |
|
$ |
|
|||||||
|
Machinery and equipment
|
|
|
|||||||||
|
Accumulated depreciation
|
(
|
(
|
|||||||||
|
Net property, plant and equipment
|
$ |
|
$ |
|
|||||||
|
Current portion of long-term debt
|
$ |
|
$ |
|
|||||||
|
|
|
|
|||||||||
|
Total finance lease liabilities
|
$ |
|
$ |
|
|||||||
| Weighted-average remaining lease term | |||||||||||
| Operating leases |
|
|
|||||||||
| Finance leases |
|
|
|||||||||
| Weighted-average discount rate | |||||||||||
| Operating leases |
|
% |
|
% | |||||||
| Finance leases |
|
% |
|
% | |||||||
| Operating Leases | Finance Leases | ||||||||||
| 2021 | $ |
|
$ |
|
|||||||
| 2022 |
|
|
|||||||||
| 2023 |
|
|
|||||||||
| 2024 |
|
|
|||||||||
| 2025 |
|
|
|||||||||
| Thereafter |
|
|
|||||||||
| Total lease payments |
|
|
|||||||||
| Less imputed interest |
|
|
|||||||||
| Total present value of lease liabilities | $ |
|
$ |
|
|||||||
| December 31 | |||||||||||
| 2020 | 2019 | ||||||||||
|
|
$ |
|
$ |
|
|||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
| Other |
|
|
|||||||||
| Total long-term debt |
|
|
|||||||||
| Less current portion of long-term debt |
(
|
(
|
|||||||||
| Long-term debt less current portion | $ |
|
$ |
|
|||||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| 2020 | $ |
|
|||
| 2019 |
|
||||
| 2018 |
|
||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
Other postretirement
liabilities |
|||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
| Funded status | |||||||||||||||||||||||||||||||||||
| Fair value of plan assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Benefit obligations |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Funded status | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
|
Amounts recognized in the Consolidated
Balance Sheets |
|||||||||||||||||||||||||||||||||||
| Non-current assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Current liabilities |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Non-current liabilities |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Total | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
|
Amounts recognized in Accumulated other
comprehensive loss (pre-tax) |
|||||||||||||||||||||||||||||||||||
| Net actuarial (gain) loss | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
| Prior service cost (credit) |
|
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
Other postretirement
liabilities |
|||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
| Balance at January 1 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Service cost |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Interest cost |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Actuarial (gain) loss |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Gross benefits paid |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Currency translation |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Plan amendments |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Acquisitions and divestitures |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
| Benefit obligation reclassified to held for sale |
|
|
(
|
(
|
|
|
|||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Balance at December 31 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Accumulated benefit obligation | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
Other postretirement
liabilities |
|||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
| Balance at January 1 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Actual return on plan assets |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Employer contributions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Gross benefits paid |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Currency translation |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Plan assets reclassified to held for sale |
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Balance at December 31 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Accumulated benefit obligation | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Fair value of plan assets |
|
|
|
|
|||||||||||||||||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Projected benefit obligation | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Fair value of plan assets |
|
|
|
|
|||||||||||||||||||
|
United States
pension liabilities |
Non-United States
pension liabilities |
Other postretirement
liabilities |
|||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
| Balance at January 1 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
| Prior service cost arising during the year |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net loss (gain) arising during the year |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Currency translation |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Less amounts included in expense during the year |
(
|
(
|
(
|
(
|
|
|
|||||||||||||||||||||||||||||
| Net change for the year |
(
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||
| Balance at December 31 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
|
United States
pension benefit expense |
Non-United States
pension benefit expense |
Other postretirement
benefits expense |
|||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||
| Service cost | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Interest cost |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets |
(
|
(
|
(
|
(
|
(
|
(
|
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Amortization |
|
|
|
|
|
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||
| Settlements, curtailments and special termination benefits |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total expense | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||
|
United States
pension plans |
Non-United States
pension plans |
||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
| Assumptions used to determine benefit obligation at year-end | |||||||||||||||||||||||||||||||||||
| Discount rate |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Rate of compensation increase |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Interest rate used to credit cash balance plans |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Assumptions used to determine expense | |||||||||||||||||||||||||||||||||||
| Discount rate used to determine benefit obligation |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Discount rate used to determine service cost |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Discount rate used to determine interest cost |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Expected long-term return on plan assets |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Rate of compensation increase |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Interest rate used to credit cash balance plans |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
|
Other postretirement
benefits plans |
|||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Assumptions used to determine benefit obligation at year-end | |||||||||||||||||
| Discount rate |
|
% |
|
% |
|
% | |||||||||||
| Health care cost trend rate assumed for next year |
|
% |
|
% |
|
% | |||||||||||
| Ultimate health care cost trend rate |
|
% |
|
% |
|
% | |||||||||||
| Year ultimate health care cost trend rate is achieved |
|
|
|
||||||||||||||
| Assumptions used to determine expense | |||||||||||||||||
| Discount rate used to determine benefit obligation |
|
% |
|
% |
|
% | |||||||||||
| Discount rate used to determine service cost |
|
% |
|
% |
|
% | |||||||||||
| Discount rate used to determine interest cost |
|
% |
|
% |
|
% | |||||||||||
| Initial health care cost trend rate |
|
% |
|
% |
|
% | |||||||||||
| Ultimate health care cost trend rate |
|
% |
|
% |
|
% | |||||||||||
| Year ultimate health care cost trend rate is achieved |
|
|
|
||||||||||||||
| 2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||
| United States plans | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Non-United States plans |
|
|
|
|
|||||||||||||||||||
| Total contributions | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
Estimated
United States pension payments |
Estimated
non-United States pension payments |
Estimated other postretirement
benefit payments |
|||||||||||||||||||||
| Gross |
Medicare prescription
drug subsidy |
||||||||||||||||||||||
| 2021 | $ |
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||
| 2022 |
|
|
|
|
|||||||||||||||||||
| 2023 |
|
|
|
|
|||||||||||||||||||
| 2024 |
|
|
|
|
|||||||||||||||||||
| 2025 |
|
|
|
|
|||||||||||||||||||
| 2026 - 2030 |
|
|
|
(
|
|||||||||||||||||||
| Total |
Quoted prices
in active markets for identical assets (Level 1) |
Other
observable inputs (Level 2) |
Unobservable
inputs
(Level 3)
1
|
||||||||||||||||||||
| 2020 | |||||||||||||||||||||||
| Common collective trusts | |||||||||||||||||||||||
| Non-United States equity and global equities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| United States equity |
|
|
|
|
|||||||||||||||||||
| Fixed income |
|
|
|
|
|||||||||||||||||||
| Fixed income securities |
|
|
|
|
|||||||||||||||||||
| United States treasuries |
|
|
|
|
|||||||||||||||||||
| Bank loans |
|
|
|
|
|||||||||||||||||||
| Real estate |
|
|
|
|
|||||||||||||||||||
| Cash equivalents |
|
|
|
|
|||||||||||||||||||
| Exchange traded funds |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
|
Common collective and other trusts measured at net asset value
|
|
||||||||||||||||||||||
| Money market funds measured at net asset value |
|
||||||||||||||||||||||
|
Pending purchases and sales of plan assets, and interest
receivable |
(
|
||||||||||||||||||||||
| Total pension plan assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Total |
Quoted prices
in active markets for identical assets (Level 1) |
Other
observable inputs (Level 2) |
Unobservable
inputs
(Level 3)
1
|
||||||||||||||||||||
| 2019 | |||||||||||||||||||||||
| Common collective trusts | |||||||||||||||||||||||
| Non-United States equity and global equities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| United States equity |
|
|
|
|
|||||||||||||||||||
| Fixed income |
|
|
|
|
|||||||||||||||||||
| Fixed income securities |
|
|
|
|
|||||||||||||||||||
| United States treasuries |
|
|
|
|
|||||||||||||||||||
| Bank loans |
|
|
|
|
|||||||||||||||||||
| Real estate |
|
|
|
|
|||||||||||||||||||
| Cash equivalents |
|
|
|
|
|||||||||||||||||||
| Exchange traded funds |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
|
Common collective and other trusts measured at net asset value
|
|
||||||||||||||||||||||
| Money market funds measured at net asset value |
|
||||||||||||||||||||||
|
Pending purchases and sales of plan assets, and interest
receivable |
(
|
||||||||||||||||||||||
| Total pension plan assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Real estate | Other | Total | |||||||||||||||
| Balance at January 1, 2019 | $ |
|
$ |
|
$ |
|
|||||||||||
| Actual return on plan assets: | |||||||||||||||||
|
Gains (losses) relating to assets still held at year-end
|
|
|
|
||||||||||||||
|
Purchases, sales, settlements - net
|
|
|
|
||||||||||||||
| Transfers into or out of Level 3 |
|
|
|
||||||||||||||
| Balance at December 31, 2019 |
|
|
|
||||||||||||||
| Actual return on plan assets: | |||||||||||||||||
|
Gains (losses) relating to assets still held at year-end
|
|
|
|
||||||||||||||
|
Purchases, sales, settlements - net
|
|
|
|
||||||||||||||
| Transfers into or out of Level 3 |
|
|
|
||||||||||||||
| Balance at December 31, 2020 | $ |
|
$ |
|
$ |
|
|||||||||||
| Total |
Quoted prices
in active markets for identical assets (Level 1) |
Other
observable inputs (Level 2) |
Unobservable
inputs (Level 3) |
||||||||||||||||||||
| 2020 | |||||||||||||||||||||||
| Cash equivalents | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
Common collective and other trusts measured at net asset value
|
|
||||||||||||||||||||||
| Total other postretirement benefits plan assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Total |
Quoted prices
in active markets for identical assets (Level 1) |
Other
observable inputs (Level 2) |
Unobservable
inputs (Level 3) |
||||||||||||||||||||
| 2019 | |||||||||||||||||||||||
| Cash equivalents | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
Common collective and other trusts measured at net asset value
|
|
||||||||||||||||||||||
| Total other postretirement benefits plan assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| 2020 | $ |
|
|||
| 2019 |
|
||||
| 2018 |
|
||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Balance at January 1 | $ |
|
$ |
|
$ |
|
|||||||||||
| Provision |
|
|
|
||||||||||||||
| Settled |
(
|
(
|
(
|
||||||||||||||
| Other |
|
(
|
(
|
||||||||||||||
| Warranty accruals reclassified to held for sale |
(
|
(
|
|
||||||||||||||
| Balance at December 31 | $ |
|
$ |
|
$ |
|
|||||||||||
| Income (loss) before income taxes | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Ireland | $ |
(
|
$ |
(
|
$ |
(
|
|||||||||||
| Foreign |
|
|
|
||||||||||||||
| Total income before income taxes | $ |
|
$ |
|
$ |
|
|||||||||||
| Income tax expense (benefit) | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Current | |||||||||||||||||
| Ireland | $ |
|
$ |
|
$ |
|
|||||||||||
| Foreign |
|
|
|
||||||||||||||
| Total current income tax expense |
|
|
|
||||||||||||||
| Deferred | |||||||||||||||||
| Ireland |
|
|
|
||||||||||||||
| Foreign |
(
|
(
|
(
|
||||||||||||||
| Total deferred income tax expense (benefit) |
(
|
(
|
(
|
||||||||||||||
| Total income tax expense | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Income taxes at the applicable statutory rate |
|
% |
|
% |
|
% | |||||||||||
| Ireland operations | |||||||||||||||||
| Ireland tax on trading income |
(
|
% |
(
|
% |
(
|
% | |||||||||||
| Nondeductible interest expense |
|
% |
|
% |
|
% | |||||||||||
| Ireland Other - net |
|
% |
|
% |
|
% | |||||||||||
| Foreign operations | |||||||||||||||||
|
Nondeductible goodwill – sale of business
|
|
% |
|
% |
|
% | |||||||||||
| Tax on foreign currency loss |
|
% |
|
% |
(
|
% | |||||||||||
|
Earnings taxed at other than
the applicable statutory tax rate |
(
|
% |
(
|
% |
(
|
% | |||||||||||
| Other items |
|
% |
|
% |
|
% | |||||||||||
| Worldwide operations | |||||||||||||||||
| Adjustments to tax liabilities |
(
|
% |
(
|
% |
|
% | |||||||||||
| Adjustments to valuation allowances |
|
% |
(
|
% |
(
|
% | |||||||||||
| Effective income tax expense rate |
|
% |
|
% |
|
% | |||||||||||
| 2020 | $ |
|
|||
| 2019 |
|
||||
| 2018 |
|
||||
| 2020 | 2019 | ||||||||||
| Noncurrent assets and liabilities | Noncurrent assets and liabilities | ||||||||||
| Accruals and other adjustments | |||||||||||
| Employee benefits | $ |
|
$ |
|
|||||||
| Depreciation and amortization |
(
|
(
|
|||||||||
| Other accruals and adjustments |
|
|
|||||||||
| Ireland income tax loss carryforwards |
|
|
|||||||||
| Foreign income tax loss carryforwards |
|
|
|||||||||
| Foreign income tax credit carryforwards |
|
|
|||||||||
|
Valuation allowance for income tax loss and income tax
credit carryforwards |
(
|
(
|
|||||||||
| Other valuation allowances |
(
|
(
|
|||||||||
| Total deferred income taxes |
|
(
|
|||||||||
| Deferred income taxes reported as held for sale |
|
|
|||||||||
| Deferred income taxes | $ |
|
$ |
(
|
|||||||
|
2021
through 2025 |
2026
through 2030 |
2031
through 2035 |
2036
through 2045 |
Not
subject to expiration |
Valuation allowance |
||||||||||||||||||||||||||||||
| Ireland income tax loss carryforwards | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
Ireland deferred income tax assets for income tax loss
carryforwards |
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||
| Foreign income tax loss carryforwards |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Foreign deferred income tax assets for income tax loss carryforwards
|
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11
|
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Foreign income tax credit carryforwards
|
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Foreign income tax credit carryforwards after ASU 2013-11
|
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Balance at January 1 | $ |
|
$ |
|
$ |
|
|||||||||||
| Increases and decreases as a result of positions taken during prior years | |||||||||||||||||
| Transfers from valuation allowances |
|
|
|
||||||||||||||
| Other increases, including currency translation |
|
|
|
||||||||||||||
| Other decreases, including currency translation |
(
|
(
|
(
|
||||||||||||||
| Increases related to acquired businesses |
|
|
|
||||||||||||||
| Increases as a result of positions taken during the current year |
|
|
|
||||||||||||||
| Decreases relating to settlements with tax authorities |
(
|
(
|
(
|
||||||||||||||
| Decreases as a result of a lapse of the applicable statute of limitations |
(
|
(
|
(
|
||||||||||||||
| Balance at December 31 | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
| Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||||||||||||||||||||||||||||
| Currency translation and related hedging instruments | |||||||||||||||||||||||||||||||||||
|
Gain (loss) from currency translation and related hedging
instruments |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
| Translation reclassified to earnings |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
(
|
(
|
||||||||||||||||||||||||||||||
| Pensions and other postretirement benefits | |||||||||||||||||||||||||||||||||||
| Prior service credit (cost) arising during the year |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Net gain (loss) arising during the year |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Currency translation |
(
|
(
|
(
|
(
|
|
|
|||||||||||||||||||||||||||||
| Other |
(
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Amortization of actuarial loss and prior service cost
reclassified to earnings |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||||||||||||||
| Gain (loss) on derivatives designated as cash flow hedges |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||
| Changes in cash flow hedges reclassified to earnings |
|
|
(
|
(
|
|
|
|||||||||||||||||||||||||||||
| Cash flow hedges, net of reclassification adjustments |
(
|
(
|
(
|
(
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income (loss) attributable to Eaton ordinary shareholders | $ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
| Currency translation and related hedging instruments | Pensions and other postretirement benefits |
Cash flow
hedges |
Total | ||||||||||||||||||||
| Balance at January 1, 2020 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
|
Other comprehensive income (loss) before
reclassifications |
|
(
|
(
|
(
|
|||||||||||||||||||
|
Amounts reclassified from Accumulated other
comprehensive loss (income) |
|
|
|
|
|||||||||||||||||||
|
Net current-period Other comprehensive
income (loss) |
|
(
|
(
|
|
|||||||||||||||||||
| Balance at December 31, 2020 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| December 31, 2020 |
Consolidated Statements of
Income classification |
|||||||||||||
|
Currency translation losses
|
||||||||||||||
| Sale of business | $ |
(
|
Gain on sale of business | |||||||||||
| Tax benefit |
|
|||||||||||||
| Total, net of tax |
(
|
|||||||||||||
|
Amortization of defined benefits pension and other
postretirement benefits items |
||||||||||||||
| Actuarial loss and prior service cost |
(
|
1
|
||||||||||||
| Tax benefit |
|
|||||||||||||
| Total, net of tax |
(
|
|||||||||||||
| Gains and (losses) on cash flow hedges | ||||||||||||||
| Currency exchange contracts |
(
|
Net sales and Cost of products sold | ||||||||||||
| Commodity contracts |
|
Cost of products sold | ||||||||||||
| Tax benefit |
|
|||||||||||||
| Total, net of tax |
(
|
|||||||||||||
| Total reclassifications for the period | $ |
(
|
||||||||||||
| (Shares in millions) | 2020 | 2019 | 2018 | ||||||||||||||
| Net income attributable to Eaton ordinary shareholders | $ |
|
$ |
|
$ |
|
|||||||||||
| Weighted-average number of ordinary shares outstanding - diluted |
|
|
|
||||||||||||||
| Less dilutive effect of equity-based compensation |
|
|
|
||||||||||||||
| Weighted-average number of ordinary shares outstanding - basic |
|
|
|
||||||||||||||
| Net income per share attributable to Eaton ordinary shareholders | |||||||||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
|||||||||||
| Basic |
|
|
|
||||||||||||||
| (Restricted stock units and awards in millions) |
Number of restricted
stock units and awards |
Weighted-average fair
value per unit and award |
|||||||||
| Non-vested at January 1 |
|
$ |
|
||||||||
| Granted |
|
|
|||||||||
| Vested |
(
|
|
|||||||||
| Forfeited |
(
|
|
|||||||||
| Non-vested at December 31 |
|
$ |
|
||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Pre-tax expense for RSUs and RSAs | $ |
|
$ |
|
$ |
|
|||||||||||
| After-tax expense for RSUs and RSAs |
|
|
|
||||||||||||||
| Fair value of vested RSUs and RSAs |
|
|
|
||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||
| Expected volatility |
|
% |
|
% |
|
% | ||||||||||||||
| Risk-free interest rate |
|
% |
|
% |
|
% | ||||||||||||||
| Weighted-average fair value of PSUs granted | $ |
|
$ |
|
$ |
|
||||||||||||||
| (Performance share units in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| Percent payout |
|
% |
|
% |
|
% | ||||||||||||||
| Shares vested |
|
|
|
|||||||||||||||||
| (Performance share units in millions) |
Number of performance
share units |
Weighted-average fair
value per unit |
||||||||||||
| Non-vested at January 1 |
|
$ |
|
|||||||||||
|
Granted
1
|
|
|
||||||||||||
|
Adjusted for performance results achieved
2
|
|
|
||||||||||||
| Vested |
(
|
|
||||||||||||
| Forfeited |
(
|
|
||||||||||||
| Non-vested at December 31 |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||
| Pre-tax expense for PSUs | $ |
|
$ |
|
$ |
|
||||||||||||||
| After-tax expense for PSUs |
|
|
|
|||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Expected volatility |
|
% |
|
% |
|
% | |||||||||||
| Expected option life in years |
|
|
|
||||||||||||||
| Expected dividend yield |
|
% |
|
% |
|
% | |||||||||||
| Risk-free interest rate |
|
|
|
||||||||||||||
| Weighted-average fair value of stock options granted | $ |
|
$ |
|
$ |
|
|||||||||||
| (Options in millions) |
Weighted-average
exercise price per option |
Options |
Weighted-average
remaining contractual life in years |
Aggregate
intrinsic value |
|||||||||||||||||||
| Outstanding at January 1, 2020 | $ |
|
|
||||||||||||||||||||
| Granted |
|
|
|||||||||||||||||||||
| Exercised |
|
(
|
|||||||||||||||||||||
| Forfeited and canceled |
|
(
|
|||||||||||||||||||||
| Outstanding at December 31, 2020 | $ |
|
|
|
$ |
|
|||||||||||||||||
| Exercisable at December 31, 2020 | $ |
|
|
|
$ |
|
|||||||||||||||||
| Reserved for future grants at December 31, 2020 |
|
||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Pre-tax expense for stock options | $ |
|
$ |
|
$ |
|
|||||||||||
| After-tax expense for stock options |
|
|
|
||||||||||||||
| Proceeds from stock options exercised |
|
|
|
||||||||||||||
| Income tax benefit related to stock options exercised | |||||||||||||||||
|
Tax benefit classified in operating activities in the Consolidated
Statements of Cash Flows |
|
|
|
||||||||||||||
| Intrinsic value of stock options exercised |
|
|
|
||||||||||||||
| Total fair value of stock options vested | $ |
|
$ |
|
$ |
|
|||||||||||
| Stock options exercised, in millions of options |
|
|
|
||||||||||||||
| Total |
Quoted prices
in active markets for identical assets (Level 1) |
Other
observable inputs (Level 2) |
Unobservable
inputs (Level 3) |
||||||||||||||||||||
| 2020 | |||||||||||||||||||||||
| Cash | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Short-term investments |
|
|
|
|
|||||||||||||||||||
| Net derivative contracts |
|
|
|
|
|||||||||||||||||||
| 2019 | |||||||||||||||||||||||
| Cash | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Short-term investments |
|
|
|
|
|||||||||||||||||||
| Net derivative contracts |
|
|
|
|
|||||||||||||||||||
| 2020 | 2019 | ||||||||||
| Time deposits and certificates of deposit with banks | $ |
|
$ |
|
|||||||
| Money market investments |
|
|
|||||||||
| Total short-term investments | $ |
|
$ |
|
|||||||
| Notional amount |
Fixed interest
rate received |
Floating interest
rate paid |
Basis for contracted floating interest rate paid | |||||||||||||||||
| $ |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Notional amount |
Floating interest
rate to be received |
Fixed interest
rate to be paid |
Basis for contracted floating interest rate received | |||||||||||||||||
| $ |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
Notional
amount |
Other
current assets |
Other
noncurrent assets |
Other
current liabilities |
Other
noncurrent liabilities |
Type of
hedge |
Term | |||||||||||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges | |||||||||||||||||||||||||||||||||||||||||
| Fixed-to-floating interest rate swaps | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Fair value |
|
|||||||||||||||||||||||||||||
|
Forward starting floating-to-fixed interest rate swaps
|
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Currency exchange contracts |
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Commodity contracts |
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges | |||||||||||||||||||||||||||||||||||||||||
| Currency exchange contracts | $ |
|
$ |
|
$ |
|
|
||||||||||||||||||||||||||||||||||
| Commodity contracts |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges | |||||||||||||||||||||||||||||||||||||||||
| Fixed-to-floating interest rate swaps | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Fair value |
|
|||||||||||||||||||||||||||||
|
Forward starting floating-to-fixed interest rate swaps
|
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Currency exchange contracts |
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Commodity contracts |
|
|
|
|
|
Cash flow |
|
||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges | |||||||||||||||||||||||||||||||||||||||||
| Currency exchange contracts | $ |
|
$ |
|
$ |
|
|
||||||||||||||||||||||||||||||||||
| Commodity contracts |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Commodity | December 31, 2020 | Term | ||||||||||||||||||
| Copper |
|
millions of pounds |
|
|||||||||||||||||
| Gold |
|
Troy ounces |
|
|||||||||||||||||
| Carrying amount of the hedged assets (liabilities) |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)
(a)
|
||||||||||||||||||||||
| Location on Consolidated Balance Sheets | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
| Long-term debt | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| 2020 | |||||||||||||||||
| Net Sales | Cost of products sold | Interest expense - net | |||||||||||||||
| Amounts from Consolidated Statements of Income | $ |
|
$ |
|
$ |
|
|||||||||||
| Gain (loss) on derivatives designated as cash flow hedges | |||||||||||||||||
| Currency exchange contracts | |||||||||||||||||
| Hedged item | $ |
|
$ |
|
$ |
|
|||||||||||
| Derivative designated as hedging instrument |
(
|
(
|
|
||||||||||||||
| Commodity contracts | |||||||||||||||||
| Hedged item | $ |
|
$ |
(
|
$ |
|
|||||||||||
| Derivative designated as hedging instrument |
|
|
|
||||||||||||||
| Gain (loss) on derivatives designated as fair value hedges | |||||||||||||||||
| Fixed-to-floating interest rate swaps | |||||||||||||||||
| Hedged item | $ |
|
$ |
|
$ |
(
|
|||||||||||
| Derivative designated as hedging instrument |
|
|
|
||||||||||||||
| 2019 | |||||||||||||||||
| Net Sales | Cost of products sold | Interest expense - net | |||||||||||||||
| Amounts from Consolidated Statements of Income | $ |
|
$ |
|
$ |
|
|||||||||||
| Gain (loss) on derivatives designated as cash flow hedges | |||||||||||||||||
| Currency exchange contracts | |||||||||||||||||
| Hedged item | $ |
|
$ |
(
|
$ |
|
|||||||||||
| Derivative designated as hedging instrument |
(
|
|
|
||||||||||||||
| Commodity contracts | |||||||||||||||||
| Hedged item | $ |
|
$ |
|
$ |
|
|||||||||||
| Derivative designated as hedging instrument |
|
|
|
||||||||||||||
| Gain (loss) on derivatives designated as fair value hedges | |||||||||||||||||
| Fixed-to-floating interest rate swaps | |||||||||||||||||
| Hedged item | $ |
|
$ |
|
$ |
(
|
|||||||||||
| Derivative designated as hedging instrument |
|
|
|
||||||||||||||
| Gain (loss) recognized in Consolidated Statements of Income | Consolidated Statements of Income classification | ||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| Gain (loss) on derivatives not designated as hedges | |||||||||||||||||
| Currency exchange contracts | $ |
|
$ |
|
Interest expense - net | ||||||||||||
| Commodity Contracts |
|
|
Cost of products sold | ||||||||||||||
| Total | $ |
|
$ |
|
|||||||||||||
|
Gain (loss) recognized in
other comprehensive (loss) income |
Location of gain (loss)
reclassified from Accumulated other comprehensive loss |
Gain (loss) reclassified
from Accumulated other comprehensive loss |
|||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
| Derivatives designated as cash flow hedges | |||||||||||||||||||||||||||||
| Forward starting floating-to-fixed interest rate swaps | $ |
(
|
$ |
(
|
Interest expense - net | $ |
|
$ |
|
||||||||||||||||||||
| Currency exchange contracts |
(
|
|
Net sales and Cost of products sold |
(
|
|
||||||||||||||||||||||||
| Commodity contracts |
|
|
Cost of products sold |
|
|
||||||||||||||||||||||||
|
Non-derivative designated as net
investment hedges |
|||||||||||||||||||||||||||||
| Foreign currency denominated debt |
(
|
|
Interest expense - net |
|
|
||||||||||||||||||||||||
| Total | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||
| 2020 | |||||
| Workforce reductions | $ |
|
|||
| Plant closing and other |
|
||||
| Total before income taxes |
|
||||
| Income tax benefit |
|
||||
| Total after income taxes | $ |
|
|||
| Per ordinary share - diluted | $ |
|
|||
| 2020 | |||||
| Electrical Americas | $ |
|
|||
| Electrical Global |
|
||||
| Aerospace |
|
||||
| Vehicle |
|
||||
| eMobility |
|
||||
| Corporate |
|
||||
|
Total
|
$ |
|
|||
| Workforce reductions | Plant closing and other | Total | |||||||||||||||
| Balance at January 1, 2020 | $ |
|
$ |
|
$ |
|
|||||||||||
| Liability recognized |
|
|
|
||||||||||||||
| Payments, utilization and translation |
(
|
(
|
(
|
||||||||||||||
| Balance at December 31, 2020 | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Net sales | |||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||
| Electrical Global |
|
|
|
||||||||||||||
| Hydraulics |
|
|
|
||||||||||||||
| Aerospace |
|
|
|
||||||||||||||
| Vehicle |
|
|
|
||||||||||||||
| eMobility |
|
|
|
||||||||||||||
| Total net sales | $ |
|
$ |
|
$ |
|
|||||||||||
| Segment operating profit (loss) | |||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||
| Electrical Global |
|
|
|
||||||||||||||
| Hydraulics |
|
|
|
||||||||||||||
| Aerospace |
|
|
|
||||||||||||||
| Vehicle |
|
|
|
||||||||||||||
| eMobility |
(
|
|
|
||||||||||||||
| Total segment operating profit |
|
|
|
||||||||||||||
| Corporate | |||||||||||||||||
| Amortization of intangible assets |
(
|
(
|
(
|
||||||||||||||
| Interest expense - net |
(
|
(
|
(
|
||||||||||||||
| Pension and other postretirement benefits expense |
(
|
(
|
(
|
||||||||||||||
| Restructuring program charges |
(
|
|
|
||||||||||||||
| Arbitration decision expense |
|
|
(
|
||||||||||||||
| Other expense - net |
(
|
(
|
(
|
||||||||||||||
| Income before income taxes |
|
|
|
||||||||||||||
| Income tax expense |
|
|
|
||||||||||||||
| Net income |
|
|
|
||||||||||||||
| Less net income for noncontrolling interests |
(
|
(
|
(
|
||||||||||||||
| Net income attributable to Eaton ordinary shareholders | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Identifiable assets | |||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||
| Electrical Global |
|
|
|
||||||||||||||
| Hydraulics |
|
|
|
||||||||||||||
| Aerospace |
|
|
|
||||||||||||||
| Vehicle |
|
|
|
||||||||||||||
| eMobility |
|
|
|
||||||||||||||
| Total identifiable assets |
|
|
|
||||||||||||||
| Goodwill |
|
|
|
||||||||||||||
| Other intangible assets |
|
|
|
||||||||||||||
| Corporate |
|
|
|
||||||||||||||
| Assets held for sale |
|
|
|
||||||||||||||
| Total assets | $ |
|
$ |
|
$ |
|
|||||||||||
| Capital expenditures for property, plant and equipment | |||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||
| Electrical Global |
|
|
|
||||||||||||||
| Hydraulics |
|
|
|
||||||||||||||
| Aerospace |
|
|
|
||||||||||||||
| Vehicle |
|
|
|
||||||||||||||
| eMobility |
|
|
|
||||||||||||||
| Total |
|
|
|
||||||||||||||
| Corporate |
|
|
|
||||||||||||||
| Total expenditures for property, plant and equipment | $ |
|
$ |
|
$ |
|
|||||||||||
| Depreciation of property, plant and equipment | |||||||||||||||||
| Electrical Americas | $ |
|
$ |
|
$ |
|
|||||||||||
| Electrical Global |
|
|
|
||||||||||||||
| Hydraulics |
|
|
|
||||||||||||||
| Aerospace |
|
|
|
||||||||||||||
| Vehicle |
|
|
|
||||||||||||||
| eMobility |
|
|
|
||||||||||||||
| Total |
|
|
|
||||||||||||||
| Corporate |
|
|
|
||||||||||||||
| Total depreciation of property, plant and equipment | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Net sales | |||||||||||||||||
| United States | $ |
|
$ |
|
$ |
|
|||||||||||
| Canada |
|
|
|
||||||||||||||
| Latin America |
|
|
|
||||||||||||||
| Europe |
|
|
|
||||||||||||||
| Asia Pacific |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| Long-lived assets | |||||||||||||||||
| United States | $ |
|
$ |
|
$ |
|
|||||||||||
| Canada |
|
|
|
||||||||||||||
| Latin America |
|
|
|
||||||||||||||
| Europe |
|
|
|
||||||||||||||
| Asia Pacific |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Net sales | $ | 17,858 | $ | 21,390 | $ | 21,609 | |||||||||||
| Net income attributable to Eaton ordinary shareholders | 1,410 | 2,211 | 2,145 | ||||||||||||||
| Net income per share attributable to Eaton ordinary shareholders - diluted | $ | 3.49 | $ | 5.25 | $ | 4.91 | |||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Acquisition integration, divestiture charges and transactions costs | $ | 288 | $ | 198 | $ | — | |||||||||||
| Gain on the sale of the Lighting business | (221) | — | — | ||||||||||||||
| Total before income taxes | 67 | 198 | — | ||||||||||||||
| Income tax expense (benefit) | 66 | (24) | — | ||||||||||||||
| Total after income taxes | $ | 133 | $ | 174 | $ | — | |||||||||||
| Per ordinary share - diluted | $ | 0.33 | $ | 0.42 | $ | — | |||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 17,858 | (17) | % | $ | 21,390 | (1) | % | $ | 21,609 | |||||||||||||||||||
| Gross profit | 5,450 | (23) | % | 7,052 | (1) | % | 7,098 | ||||||||||||||||||||||
| Percent of net sales | 30.5 | % | 33.0 | % | 32.8 | % | |||||||||||||||||||||||
| Income before income taxes | 1,746 | (33) | % | 2,591 | 7 | % | 2,424 | ||||||||||||||||||||||
| Net income | 1,415 | (36) | % | 2,213 | 3 | % | 2,146 | ||||||||||||||||||||||
| Less net income for noncontrolling interests | (5) | (2) | (1) | ||||||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | 1,410 | (36) | % | 2,211 | 3 | % | 2,145 | ||||||||||||||||||||||
| Excluding acquisition and divestiture charges, after-tax | 133 | 174 | — | ||||||||||||||||||||||||||
| Excluding restructuring program charges, after-tax | 170 | — | — | ||||||||||||||||||||||||||
| Adjusted earnings | $ | 1,713 | (28) | % | $ | 2,385 | 11 | % | $ | 2,145 | |||||||||||||||||||
|
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$ | 3.49 | (34) | % | $ | 5.25 | 7 | % | $ | 4.91 | |||||||||||||||||||
|
Excluding per share impact of acquisition and divestiture charges, after-tax
|
0.33 | 0.42 | — | ||||||||||||||||||||||||||
|
Excluding per share impact of restructuring program charges, after-tax
|
0.42 | — | — | ||||||||||||||||||||||||||
| Adjusted earnings per ordinary share | $ | 4.24 | (25) | % | $ | 5.67 | 15 | % | $ | 4.91 | |||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 6,680 | (18) | % | $ | 8,175 | 3 | % | $ | 7,914 | |||||||||||||||||||
| Operating profit | $ | 1,352 | (13) | % | $ | 1,549 | 13 | % | $ | 1,372 | |||||||||||||||||||
| Operating margin | 20.2 | % | 18.9 | % | 17.3 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 4,703 | (9) | % | $ | 5,172 | — | % | $ | 5,159 | |||||||||||||||||||
| Operating profit | $ | 750 | (16) | % | $ | 897 | 8 | % | $ | 833 | |||||||||||||||||||
| Operating margin | 15.9 | % | 17.3 | % | 16.1 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 1,842 | (16) | % | $ | 2,204 | (8) | % | $ | 2,392 | |||||||||||||||||||
| Operating profit | $ | 186 | (4) | % | $ | 193 | (28) | % | $ | 267 | |||||||||||||||||||
| Operating margin | 10.1 | % | 8.8 | % | 11.2 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 2,223 | (10) | % | $ | 2,480 | 6 | % | $ | 2,335 | |||||||||||||||||||
| Operating profit | $ | 414 | (30) | % | $ | 595 | 18 | % | $ | 503 | |||||||||||||||||||
| Operating margin | 18.6 | % | 24.0 | % | 21.5 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 2,118 | (30) | % | $ | 3,038 | (13) | % | $ | 3,489 | |||||||||||||||||||
| Operating profit | $ | 243 | (47) | % | $ | 460 | (25) | % | $ | 611 | |||||||||||||||||||
| Operating margin | 11.5 | % | 15.1 | % | 17.5 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Net sales | $ | 292 | (9) | % | $ | 321 | — | % | $ | 320 | |||||||||||||||||||
| Operating profit (loss) | $ | (8) | (147) | % | $ | 17 | (61) | % | $ | 44 | |||||||||||||||||||
| Operating margin | (2.7) | % | 5.3 | % | 13.8 | % | |||||||||||||||||||||||
| 2020 |
Change
from 2019 |
2019 |
Change
from 2018 |
2018 | |||||||||||||||||||||||||
| Amortization of intangible assets | $ | 354 | (4) | % | $ | 367 | (4) | % | $ | 382 | |||||||||||||||||||
| Interest expense - net | 149 | (25) | % | 199 | (23) | % | 258 | ||||||||||||||||||||||
| Pension and other postretirement benefits expense | 40 | 233 | % | 12 | 1,100 | % | 1 | ||||||||||||||||||||||
| Restructuring program charges | 214 | NM | — | NM | — | ||||||||||||||||||||||||
| Arbitration decision expense | — | NM | — | NM | 275 | ||||||||||||||||||||||||
| Other expense - net | 434 | (20) | % | 542 | 87 | % | 290 | ||||||||||||||||||||||
| Total corporate expense | $ | 1,191 | 6 | % | $ | 1,120 | (7) | % | $ | 1,206 | |||||||||||||||||||
|
December 31,
2020 |
||||||||
| Current assets | $ | 4,031 | ||||||
| Noncurrent assets | 11,642 | |||||||
| Current liabilities | 2,916 | |||||||
| Noncurrent liabilities | 9,049 | |||||||
| Amounts due to subsidiaries that are non-issuers and non-guarantors - net | 15,938 | |||||||
| 2020 | ||||||||
| Net sales | $ | 10,191 | ||||||
| Sales to subsidiaries that are non-issuers and non-guarantors | 833 | |||||||
| Cost of products sold | 8,402 | |||||||
| Expense from subsidiaries that are non-issuers and non-guarantors - net | 459 | |||||||
| Net loss | (484) | |||||||
| Credit Rating Agency (long- /short-term rating) | Rating | Outlook | ||||||||||||
| Standard & Poor's | A-/A-2 | Stable outlook | ||||||||||||
| Moody's | Baa1/P-2 | Stable outlook | ||||||||||||
| Fitch | BBB+/F1 | Negative outlook | ||||||||||||
| 2021 |
2022
to 2023 |
2024
to 2025 |
Thereafter | Total | |||||||||||||||||||||||||
|
Long-term debt, including current portion
(1)
|
$ | 1,037 | $ | 2,000 | $ | 1,500 | $ | 3,374 | $ | 7,911 | |||||||||||||||||||
| Interest expense related to long-term debt | 238 | 397 | 314 | 1,483 | 2,432 | ||||||||||||||||||||||||
|
Reduction of interest expense from interest rate swap agreements related to long-term debt
|
(46) | (47) | (12) | (33) | (138) | ||||||||||||||||||||||||
| Operating leases | 129 | 181 | 84 | 91 | 485 | ||||||||||||||||||||||||
| Finance leases | 10 | 14 | 7 | 11 | 42 | ||||||||||||||||||||||||
| Purchase obligations | 830 | 158 | 77 | 197 | 1,262 | ||||||||||||||||||||||||
| Other obligations | 369 | 9 | 10 | 21 | 409 | ||||||||||||||||||||||||
| Held for sale obligations | 38 | 37 | 7 | 17 | 99 | ||||||||||||||||||||||||
| Total | $ | 2,605 | $ | 2,749 | $ | 1,987 | $ | 5,161 | $ | 12,502 | |||||||||||||||||||
|
(1)
Long-term debt excludes deferred gains and losses on derivatives related to debt, adjustments to fair market value, premiums and discounts on long-term debentures, debt issuance costs, and finance leases.
|
|||||||||||||||||||||||||||||
| Quarter ended in 2020 | Quarter ended in 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
| (In millions except for per share data) | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | |||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 4,687 | $ | 4,526 | $ | 3,856 | $ | 4,789 | $ | 5,238 | $ | 5,314 | $ | 5,533 | $ | 5,305 | |||||||||||||||||||||||||||||||
| Gross profit | 1,509 | 1,475 | 979 | 1,487 | 1,682 | 1,802 | 1,836 | 1,732 | |||||||||||||||||||||||||||||||||||||||
| Percent of net sales | 32.2 | % | 32.6 | % | 25.4 | % | 31.1 | % | 32.1 | % | 33.9 | % | 33.2 | % | 32.6 | % | |||||||||||||||||||||||||||||||
| Income before income taxes | 553 | 525 | 47 | 621 | 532 | 718 | 738 | 603 | |||||||||||||||||||||||||||||||||||||||
| Net income | 476 | 447 | 54 | 438 | 453 | 602 | 636 | 522 | |||||||||||||||||||||||||||||||||||||||
|
Less net (income) loss for
noncontrolling interests |
(1) | (1) | (3) | — | (1) | (1) | — | — | |||||||||||||||||||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | $ | 475 | $ | 446 | $ | 51 | $ | 438 | $ | 452 | $ | 601 | $ | 636 | $ | 522 | |||||||||||||||||||||||||||||||
| Net income per share attributable to Eaton ordinary shareholders | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.18 | $ | 1.11 | $ | 0.13 | $ | 1.07 | $ | 1.09 | $ | 1.44 | $ | 1.50 | $ | 1.23 | |||||||||||||||||||||||||||||||
| Basic | 1.19 | 1.11 | 0.13 | 1.07 | 1.09 | 1.44 | 1.51 | 1.23 | |||||||||||||||||||||||||||||||||||||||
|
Cash dividends declared per
ordinary share |
$ | 0.73 | $ | 0.73 | $ | 0.73 | $ | 0.73 | $ | 0.71 | $ | 0.71 | $ | 0.71 | $ | 0.71 | |||||||||||||||||||||||||||||||
| Earnings per share for the four quarters in a year may not equal full year earnings per share. | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and divestiture charges, and restructuring program charges included in Income before income taxes are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
| Quarter ended in 2020 | Quarter ended in 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | ||||||||||||||||||||||||||||||||||||||||
|
Acquisition integration and divestiture charges, and gain
on the sale of the Lighting business |
$ | 25 | $ | 28 | $ | 103 | $ | (89) | $ | 133 | $ | 39 | $ | 14 | $ | 12 | |||||||||||||||||||||||||||||||
| Restructuring program charges | 17 | 10 | 187 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| (In millions except for per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Net sales | $ | 17,858 | $ | 21,390 | $ | 21,609 | $ | 20,404 | $ | 19,747 | |||||||||||||||||||
|
Income before income taxes
|
1,746 | 2,591 | 2,424 | 3,368 | 2,118 | ||||||||||||||||||||||||
|
Net income
|
1,415 | 2,213 | 2,146 | 2,986 | 1,919 | ||||||||||||||||||||||||
|
Less net income for noncontrolling interests
|
(5) | (2) | (1) | (1) | (3) | ||||||||||||||||||||||||
|
Net income attributable to Eaton ordinary shareholders
|
$ | 1,410 | $ | 2,211 | $ | 2,145 | $ | 2,985 | $ | 1,916 | |||||||||||||||||||
|
Net income per share attributable to Eaton ordinary shareholders
|
|||||||||||||||||||||||||||||
| Diluted | $ | 3.49 | $ | 5.25 | $ | 4.91 | $ | 6.68 | $ | 4.20 | |||||||||||||||||||
| Basic | 3.51 | 5.28 | 4.93 | 6.71 | 4.21 | ||||||||||||||||||||||||
|
Weighted-average number of ordinary shares outstanding
|
|||||||||||||||||||||||||||||
| Diluted | 404.0 | 420.8 | 436.9 | 447.0 | 456.5 | ||||||||||||||||||||||||
| Basic | 402.2 | 419.0 | 434.3 | 444.5 | 455.0 | ||||||||||||||||||||||||
|
Cash dividends declared
per ordinary share |
$ | 2.92 | $ | 2.84 | $ | 2.64 | $ | 2.40 | $ | 2.28 | |||||||||||||||||||
|
Total assets
(1)
|
$ | 31,824 | $ | 32,805 | $ | 31,092 | $ | 32,623 | $ | 30,476 | |||||||||||||||||||
| Long-term debt | 7,010 | 7,819 | 6,768 | 7,167 | 6,711 | ||||||||||||||||||||||||
| Total debt | 8,058 | 8,322 | 7,521 | 7,751 | 8,277 | ||||||||||||||||||||||||
| Eaton shareholders' equity | 14,930 | 16,082 | 16,107 | 17,253 | 14,954 | ||||||||||||||||||||||||
|
Eaton shareholders' equity
per ordinary share
|
$ | 37.50 | $ | 38.91 | $ | 38.02 | $ | 39.22 | $ | 33.28 | |||||||||||||||||||
|
Ordinary shares outstanding
|
398.1 | 413.3 | 423.6 | 439.9 | 449.4 | ||||||||||||||||||||||||